Kospi Briefly Enters 10% Correction as Rising Yields Hit AI-Fueled Rally

5 articles · Updated · Bloomberg · May 18

South Korea’s Kospi slid as much as 4.7% on Monday, pushing the benchmark more than 10% below its May 14 peak before it trimmed losses to about 3%.
Rising bond yields undermined risk appetite and threatened the AI-driven rally that had made Korean equities one of the world’s hottest stock trades.
The Korea Exchange briefly halted Kospi program selling after a sharp slump in futures, signaling stress in early trading as the selloff accelerated.
The reversal leaves the market testing whether higher yields can break momentum in a rally that had surged on artificial-intelligence optimism.

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